Keep getting signwriter directory not writable in recent log entries

I ahve used signwriter to show a TTF font image as my site name. Everytime the site page is accessed, I see an error in teh recent log entries saying "The directory sites/default/files/signwriter is not writable, because it does not have the correct permissions set" Location http://www.indianartexperience.com/admin/reports/dblog
Referrer http://www.indianartexperience.com/admin/reports

It doesn't go away even after settign the permisions as 777. I do not have cache clearign enabled.
What is causing this? How do I get rid of this?